Ho Chi Minh City Securities Corporation (HSC, HOSE: HCM) announces the financial performance in Q4.2023 and accumulated FY2023.
Accordingly, pre-tax profit in Q4.2023 achieved VND225 billion, increased by 41% compared to the same period last year. Accumulated FY2023, HSC recorded pre-tax profit of VND842 billion, completing 93% of the 2023 plan.
In the context of fluctutating market conditions, HSC still maintains stability of business activities and records positive results. Revenue in Q4.2023 achieved VND601 billion, increased by 3% compared to the same period last year. In 2023, HSC’s revenue reached more than VND2,255 billion completing 96% of the 2023 plan, of which:
Revenue from securities service reached VND672 billion, accounting for 30% of HSC's total revenue. In Q4.2023, HSC has expanded its market share to 5.35% (from 5.06% in Q3.2023), ranking 5th in Top 10 securities companies with the largest brokerage market share on HOSE.
Revenue from margin lending activities amounted to VND1,066 billion, equivalent to 47% of HSC's total revenue. In 2023, margin lending activities steadily grew and accounted the largest proportion in the revenue structure thanks to the flexibility in the margin lending risk management policy. As of December 31, 2023, margin loan balance reached more than VND12,135 billion, increased by 64% compared to the beginning of this year.
Revenue from proprietary investment achieved VND473 billion, contributing 21% to the company’s total revenue. HSC's proprietary trading activities focus mostly on market making activities for ETF and Covered warrants products.
The corporate finance advisory segment recorded revenue of 22 billion VND. Revenue from this segment did not meet expectation because some consulting deals progress were slower than planned will be recorded in business results after being completed.
As of December 31, 2023, HSC's total assets reached VND17,911 billion. Shareholders’ equity reached VND8,312 billion. Earnings per share (EPS) in 2023 reached VND1,475. The return on equity (ROAE) ratio was 8.3%.
On December 7, 2023, the State Securities Commission (SSC) granted the Certificate on public offering registration for HSC. Accordingly, the Company plans to issue 297 million shares through two options: offering to existing shareholders and issuing shares to pay the second interim FY2021 dividend, thereby rasing charter capital to VND 7,552 billion. The capital obtained from the offering will be used to supplement capital for margin lending and proprietary trading activities, contributing to improving HSC's financial capacity and business performance in the coming time.
2023 marks a significant milestone, being the 20th anniversary of HSC’s formation and development with the capital market. From beginning of 50 billion VND charter capital, HSC has grown to become one of the a leading securities brokerage firm and investment bank in Vietnam with CAGR on revenue and pre-tax profit for the past 20 years reached 36%.
Please access here for Q4.2023 Financial Statement.